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University of Hawaii professors have rejected a proposed five percent pay cut and will instead make their own proposal on how the university can save money.

The University of Hawaii Professional Assembly, which represents 3,200 UH faculty members, said 86 percent of its members voted this week to reject the offer.

In addition to the pay cut, the proposal, which UH called its “last and best final offer,” also called for a payroll lag that would reduce the number of annual paychecks from 24 to 23, and reduce the state’s contribution to health insurance premiums.

The union had recommended that its members vote against the pay cut because it said there was no protection against additional pay cuts or layoffs. The UH system expects to be short about $155 million over the next two fiscal years; the Manoa campus is projected to be $45.6 million in the red this year if no cuts are made.

The average professor at UH’s 10 campuses earns approximately $84,000 a year, according to the university.

UHPA Executive Director J.N. Musto had said last week that if faculty rejected the salary cut, the union would make its own proposal to the university. It also said it likely would take legal action or strike if UH tries to impose the offer without an agreement.

The UH faculty just completed a labor contract that saw pay raises of 7 percent in 2007 and 11 percent in 2008. While the contract has expired, it remains in effect as long as the union and the state are bargaining for a new contract.

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